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Common Sense Recommendations For The Application Of Tax Law To Digital Assets, Luís Calderón Gómez, Young Ran (Christine) Kim, Edward A. Zelinsky
Common Sense Recommendations For The Application Of Tax Law To Digital Assets, Luís Calderón Gómez, Young Ran (Christine) Kim, Edward A. Zelinsky
Online Publications
In response to the Joint Committee on Taxation’s July 2023 request for comments on application of various Internal Revenue Code sections on digital assets, we propose a consistent set of rules to apply current law to digital assets. We highlight that the underlying economics and characteristics of transactions should be the primary concern for the application of rules and the valuation of digital assets. We believe any digital asset rules should (1) treat classes of digital assets with unique characteristics differently based on their economics, (2) minimize incentives for users to engage in tax-motivated structuring of transactions, and (3) allow …